Research Has Shown That Having A Close Friend Is Worth $150,000, And People Derive More Life Satisfaction From Close Friendships Than Both High Incomes And Marriage
Friendships don’t just make life more enjoyable; studies have shown that they also improve our physical well-being by reducing the risk of significant health problems such as high blood pressure and depression.
But, if you had to put a dollar amount on one of your close friendships, how much would you estimate it’s worth?
In 2008, The Journal of Socio-Economics published a study aiming to quantify the worth of social connections. This study discovered that the happiness and life satisfaction derived from having a close friend is comparable to an additional £85,000 in monetary terms.
When adjusted for inflation, this figure translates to approximately £112,000, or $150,000 in today’s currency.
According to Nick Powdthavee, the study’s author, while the financial equivalent might vary with time, the core message remains consistent. Individuals with a robust social network tend to experience greater overall life satisfaction compared to those lacking one.
For the study, which spanned 18 years and involved over 10,000 participants, researchers utilized data from the British Household Panel Survey to explore what contributes more to personal happiness: money or friendship. The results clearly favored friendship as the dominant factor.
“Income only plays a small part in influencing our well-being. Other possessions in life, such as social relationships, matter a lot more to happiness than what average level of income can normally buy in the long run,” the study’s authors wrote.
The study participants were asked to rate their life satisfaction on a scale from one to seven, where one represented very dissatisfied, and seven meant very satisfied with life. Those with a strong social network scored two points higher in satisfaction compared to individuals without such networks.
Additionally, the study examined the role of friendship compared to marriage in contributing to life satisfaction. Once again, friendship emerged as the more significant factor.
Look! – stock.adobe.com – illustrative purposes only, not the actual people
“On average, people with a rich social network report a significantly higher life satisfaction, and it has nothing to do with work or marriage,” Powdthavee said.
Afterward, the team explored the amount of additional income needed to bring someone without a close friend up to the same level of satisfaction as someone who has one, determining it to be $150,000 per year.
Now, in the wake of this finding, Powdthavee cautioned people against getting too caught up in the specific monetary figure, emphasizing instead the practical implications of the research.
Powdthavee claimed that life is full of trade-off choices, such as spending additional hours at work versus engaging in more social activities.
So, opting to dedicate more time to work at the cost of your friendships might end up being the less satisfying option in terms of overall happiness.
This is an important aspect to weigh when evaluating a job offer. Should you lean towards a higher-paying position that limits your time for socializing, you’d need to compensate with roughly $150,000 extra annually “on top of your current salary,” Powdthavee concluded.
To read the study’s complete findings, visit the link here.
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